Best Personal Loans in Colorado of 2024
Updated: April 11, 2024
Advertising & Editorial Disclosure
MoneyGeek considered lender reputation, interest rates, flexibility and application experience when ranking the best lenders in Colorado. First Tech and PenFed are MoneyGeek's top personal loan picks in Colorado, scoring 97 and 96, respectively. First Tech leads with excellent customer support and competitive rates, while PenFed offers a variety of loan options and unambiguous terms.
Remember, your credit score and income matter when getting a loan. Colorado's average credit score is 731, and borrowers with a credit score near that value might find good loan conditions and APRs.
- First Tech
- 97MoneyGeek Score
- 9.29% to 14.09%APR Range
- UndisclosedMinimum Credit Score
- $500 to $50,000Loan Amount Range
- 24 to 84 monthsRepayment Terms
MoneyGeek's pick for the best personal loan lender in Colorado is First Tech, with a MoneyGeek score of 97 out of 100. This lender offers APRs ranging from 9.29% to 14.09%, notable for being more competitive than most lenders reviewed by MoneyGeek. First Tech stands out for its exceptional customer service and educational resources, as well as having the most competitive rates and fees. Furthermore, its repayment terms are versatile, offering periods from 24 to 84 months, adding to its strong overall performance in MoneyGeek's evaluation.
Pros
- Insured by the National Credit Union Administration (NCUA)
- Provides granular APR data for a variety of loan terms
- In-person appointments available in certain states (CA, CO, GA, ID, MA, OR, TX, WA)
Cons
- Need to be a member to apply
- Could provide more detail on the loan application process
- Little published information about credit score requirements
Overall Best Personal Loan Lender in Colorado
- PenFed
- 96MoneyGeek Score
- 7.99% to 17.99%APR Range
- UndisclosedMinimum Credit Score
- Up to $50,000Loan Amount Range
- Up to 60 monthsRepayment Terms
PenFed Credit Union is MoneyGeek's runner-up for the best lender for personal loans in Colorado, with a MoneyGeek Score of 96 out of 100. With competitive APRs ranging from 7.99% to 17.99%, PenFed's rates are well-placed compared to the higher ranges noted in the analysis. Its loan repayment terms extend up to 60 months, providing flexibility. PenFed shines in furnishing ample information to consumers and giving them flexible loan terms, which are critical in choosing a personal loan provider.
Pros
- Offers some of the lowest APRs available
- No early repayment penalty
- Insured by the National Credit Union Administration (NCUA)
Cons
- Need to be a member to apply
- $50 minimum monthly loan payment
- No information provided about credit score requirements
Runner-Up for Best Personal Loan Lender in Colorado
The amount of monthly debt payments you have relative to your monthly gross income is called your debt-to-income ratio, or DTI.
Most lenders prefer a debt-to-income ratio of 35% to 40% or below for secured loans and 40% to 45% or below for unsecured personal loans. A debt-to-income ratio above 50% is considered high, so approval may be more difficult, or your loan may have higher interest rates.
— Alvin Yam, CFP®
Calculate Your Monthly Loan Payment
Explore your loan options with our personal loan calculator, a simple tool to calculate monthly payments and total loan costs based on the amount, interest rate and term length, helping you make informed decisions before committing.
- Happy Money
- 93MoneyGeek Score
- 11.72% to 17.99%APR Range
- 640Minimum Credit Score
- $5,000 to $40,000Loan Amount Range
- 24 to 60 monthsRepayment Terms
Happy Money is MoneyGeek's top choice for the best personal loan provider in Colorado for borrowers with low credit, scoring 93 out of 100. Although not a traditional lender, Happy Money partners with 10 federally insured financial institutions to originate loans, offering transparent minimum credit requirements on their website. Its APR range of 11.72% to 17.99% stands out favorably in comparison to competitors. The minimum credit score they require is 640. The provider excels in customer-focused areas, particularly in outlining clear loan terms and offering solid support.
Pros
- Works with 10 federally insured lenders to originate all loans
- Transparent eligibility requirements, including credit score minimum
- No application fee
Cons
- The lenders they work with charge an origination fee
- Longer time to wait for loan approval compared to other lenders analyzed
Best Personal Loan Lender in Colorado for Bad Credit
- Alliant Credit Union
- 95MoneyGeek Score
- 11.49% to 14.49%APR Range
- UndisclosedMinimum Credit Score
- $1,000 to $100,000Loan Amount Range
- 12 to 60 monthsRepayment Terms
MoneyGeek's pick for the best personal loan provider for debt consolidation in Colorado is Alliant Credit Union, with a 95 out of 100 score due to highly competitive rates and transparent practices. Alliant is an internet-based financial cooperative; membership and a 90-day standing are prerequisites for personal loan eligibility. Its APR range of 11.49% to 14.49% is favorable compared to peers, and while it shines in offering clear information and low rates, it does not compromise on application efficiency and integrity in customer dealings.
Pros
- Among the highest loan limits available in our analysis
- Insured by the National Credit Union Administration (NCUA)
- Wide variety of loan types available
Cons
- An online-only credit union, no physical branches
- Have to be a member for 90 days to apply
Best Personal Loan Lender in Colorado for Debt Consolidation
Interest on personal loans is generally not tax deductible, as personal loans are considered consumer debt. But there are some exceptions where the interest may qualify:
- When consolidating high-interest qualifying debts like credit cards or student loans, if used to pay off those debts.
- If used for home improvements that increase the home's value.
- If the loan proceeds can be demonstrated as used exclusively for business expenses or starting a business.
- In some cases, if the loan is used for investment purposes related to income-generating assets.
— Alvin Yam, CFP®
Impact of Credit Score on Loan Repayment in Colorado
Colorado lenders assess your creditworthiness — including your credit score, credit history, income and debt-to-income ratio — in determining your loan terms and your APR. Before your loan application, improving your credit score can lead to better loan terms and possibly lower APRs.
Refer to the table below to understand how different credit scores affect monthly loan payments and overall loan costs.
This table offers an approximation of monthly payments, calculated using median personal loan interest rates typical for various credit score ranges. Please remember that these numbers are median estimates, provided for general guidance. They should not be taken as precise rates for everyone in each credit score category. Actual interest rates can differ due to lender-specific policies, prevailing market conditions and unique borrower profiles.
Pros and Cons of Personal Loans in Colorado
Personal loans offer the flexibility to manage finances efficiently, with lower interest rates and the option to consolidate debts. It's also a quick source of funds for various unexpected financial needs. However, it's important to recognize its potential downsides, such as origination fees and the risk of asset loss in secured loans.
To have a better understanding of this bargain, evaluate the ups and downs of personal loans before sealing a deal.
FAQ About Personal Loans in Colorado
If you have questions about personal loans, MoneyGeek has answers to help you make an informed decision before applying.
According to MoneyGeek's analysis, the best lender in Colorado for personal loans is First Tech, with a MoneyGeek score of 97 and an average APR of 12%.
Personal loans in Colorado can be obtained from online lenders, banks and credit unions. For local access and in-person services, options include Colorado Credit Union, Credit Union of Colorado and Canvas Credit Union.
The lender offering the lowest APR for personal loans in Colorado, according to MoneyGeek, is PenFed with an APR starting at 7.99%. Remember, the best low rate for you may vary based on your financial situation and needs, and securing it typically requires excellent credit.
In Colorado, personal loans can be used for a variety of purposes. Typically you can use personal loans for medical expenses, home or auto repair, or emergency circumstances. They are not commonly allowed for college tuition or illegal activity.
When considering personal loans, red flags include high APRs, strict repayment penalties, a lack of transparency about the lender's federal insurance status and a pattern of poor consumer reviews.
Yes, lenders do consider income level when reviewing personal loan applications, but they also examine debt-to-income ratio, credit score, employment history, employment type and overall credit history. It's advisable to avoid opening new credit lines while applying for a personal loan as it can affect the outcome.
sources
- Experian. "What is the Average Credit Score in the US?." Accessed April 4, 2024.
The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.
Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about
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